Councillors recently visited the project on the site of the abandoned Crown Hotel in Crieff.
Plans include the development of 14 new homes by the end of November this year at a total cost of £1.8m.
Kingdom has received £1.1m funding support from the Scottish Government's Affordability Housing Supply Programme and the Town Centre Housing Fund.
Perth & Kinross Council also provided £45,000 in grant funding to the project, with the balance of the costs funded by Kingdom.
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The project is being developed by contractor Campion.
Bill Banks, chief executive of Kingdom, said: "This has not been an easy project to develop, due to it being located in the town centre and within a conservation area and the site being subject to various constraints. When we first considered the project we wanted to redevelop the original building, however the building had been derelict for too long. It had not been maintained and earlier attempts at renovations had left the building unsafe, damaging its structural integrity.
"The new flats will provide high quality homes and help meet the growing need for affordable housing in Crieff and the project will make a significant contribution to the redevelopment of the area."
Dougie Herd, construction director with Campion, said: "We are delighted to be working in partnership with Kingdom to provide much needed affordable homes in a great locality in the town centre."
(LM/CD)
